BIR Ruling No. 144-83

August 8, 1983 BIR RULING NO. 144-83 Gentlemen : This refers to your letter dated October 26, 1982 requesting information on the applicable rate of percentage tax on ammonia pressure gauges and ammonia ductile iron valves in view of your plan to import these articles to be used in industrial ice plants for fishing industries and ice-making purposes. It is represented that your are an importer and stockist of industrial products; and that you are intending to import ammonia pressure gauges and ammonia ductile iron valves which will be used only in industrial ice plants not for air-conditioning units because for the latter, only pressure gauges and valves which are made of brass are used. In reply, please be informed that since the ammonia pressure gauges and ammonia ductile iron valves will be used only in industrial ice plants and are not adopted for air-conditioning units, your importation will be subject to the 10% advance sales tax based on the landed cost thereof plus 25% mark-up, pursuant to Section 193(b), in relation to Section 199, of the Tax Code. However, if said pressure gauges and valves will be used for air-conditioning units and household refrigerators, the same shall be subject to the 25% advance sales tax based on the landed cost thereof plus 25% mark-up, pursuant to Section 196 or 197.11 as the case may be, of the Tax Code, in relation to Section 193(b) of the same Code, as amended by Executive Order No. 883. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue